Washington Paid Leave Premium to Rise in 2027

Employers will face higher payroll costs starting January 1 as the mandatory premium rate increases to 1.2 percent.

Updated on Oct. 27, 2026 in Employment

Bold flat-color editorial illustration showing a large iron sphere balanced on a steel prism, representing state-level financial policy adjustments. — Washington's Paid Family and Medical Leave premium will increase to 1.2 percent in 2027 to ensure program solvency, the state announced. AI Illustration. Upload story photo >

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Washington's Paid Family and Medical Leave premium rate will rise to 1.2 percent on January 1, 2027. This mandatory adjustment for the state-run program follows a 2026 rate of 1.13 percent and reflects the department's annual calculation to ensure long-term program solvency.

Why it matters

The increase directly impacts payroll overhead and take-home pay, as employers are responsible for 29.3 percent of the total premium. With program utilization continuing to rise, operators must prepare for higher recurring labor costs to fund the state's benefit requirements.

The 2027 premium rate of 1.2 percent marks an increase from the 1.13 percent rate in 2026 and the 0.40 percent rate at the program's 2019 inception. More than 221,000 individuals claimed $1.8 billion in benefits during the first nine months of 2026, with 377,000 applicants projected for 2027.

The players

Washington Employment Security Department

The state agency responsible for overseeing unemployment insurance and the administration of the Paid Family and Medical Leave program.

The details

The Employment Security Department recalculates these rates annually every October based on previous year usage and collection levels. Employees are required to contribute 70.7 percent of the total premium, while employers cover the remaining 29.3 percent. With 46 percent of recipients in 2024 identified as repeat users, the rising demand necessitates these annual fiscal adjustments to keep the fund balance aligned with the $1,647 maximum weekly benefit payout.

The state-mandated program began operations in 2019.
Data from 2024 shows that 46 percent of recipients were repeat users of the leave system.
During the first nine months of 2026, claimants received over $1.8 billion in total benefits.
The new 1.2 percent premium rate takes effect on January 1, 2027.

Market Landscape

This premium increase follows the established annual review protocol set forth by the Washington Paid Family and Medical Leave Act. The move reflects an ongoing trend of rising program utilization that continues to test the sustainability of state-mandated social insurance models.

Business owners should update payroll systems to account for the new employer-side premium contribution effective January 1. Ensure your HR department or external payroll service is ready to adjust employee withholdings to comply with the 70.7 percent employee-funded portion of the total rate.

The takeaway

The program shift signals that employers must anticipate recurring upward adjustments to payroll-funded mandates as usage matures. Consult with your accountant to review your firm's total labor burden and ensure compliance with the new statutory rate requirements effective at the start of the year.